15 Stock Market Trading Mistakes

“The 15 SOLUTIONS to the Most Common Mistakes Almost All Stock Market Investors Make”

We all make mistakes – we are human after all.

How do you tell a child what hot is? [you can’t]

At some point the child get’s burned then they know what hot FEELS like

[and they know to stay away, hopefully]

Over 10 years trading I’ve seen traders get burned by the same mistakes time and time again. You can follow them [and get the same results] or you can learn from theirs and my experience and not get burned yourself.

[I think your experience also counts too – what mistakes have you made and learned from? Please post your COMMENTS at the end of this Blog. My Top Trader Paul has already started with his TOP 10 at the end of this blog]

EVERY great trader makes losses and learns some lessons the hard way [often this is then the start of them making consistent, HIGH returns] It’s a part of growing and learning to become a trader.

I can give you the oven gloves or the sun cream [to minimise these losses] but you have to remember to use them.

[stop reading now if you’re not serious about making money trading]

Below are 15 SOLUTIONS to most common mistakes ALL traders make – use them and you will make £thousands:

1. Create a MASSIVE trading ‘why’ – what is your reason for trading?
This is your motivator and will keep you going through the up’s and down’s. Whether providing extra income for your family or creating changes in lifestyle – make sure they are HUGE and write them down!

2. Create trading GOALS
Focus on the execution – one step at a time [most people overestimate what they can achieve in one month and underestimate what they can achieve in one year – be realistic

3. Create a POSITIVE mindset to wealth
Trading is 80% psychology, 20% strategy. If you are facing greater losses than gains then the root cause will most likely come down to your mindset.

4. Work with a trading COACH
To become great, the best use a coach whether in tennis, golf or even learning to drive a car. Choose someone who is already achieving the results you want

5. FOCUS on getting the strategy right
Mastering one strategy and limiting the number you learn to 3 (max) will improve your results. Make sure you choose the strategies that best suit YOUR character and lifestyle

6. Make decisions when the market is CLOSED
Keep the emotions out (and make the decisions good ones)

7. Check your STRATEGY works for each stock
Before entering a trade check the pattern and strategy that you are applying works for that stock

8. Have a trading PLAN
Write down your rules and follow your rules, always. Don’t second guess them. Don't break them and control your emotions that try to convince you otherwise

9. CUT your Losses Short
Always cut your losses short – don’t make the mistake of thinking it will bounce back

10. Let your Profits RUN
Always use a stop loss to lock in your profits as you make them and let the stock run

11. NEVER allow profit to turn to loss
Follow your rules all of the time and this will not happen

12. AVOID trading near a stock’s earning period

13. Let the PRICE tell you where to enter
There are indicators everywhere providing information. Price is the only true measure – base your decisions on this

14. Start a TRADING DIARY
Learn from your mistakes and successes – keep a note of everything you trade and your reasons for taking the decisions you did – you will learn a lot!

15. Have FUN
Enjoy what you do and do what you enjoy – you will get better results every time

16. NEVER give up
Success is just around the corner [however long you think you it will take – start with doubling it and add more]. You ONLY fail when you stop

Now, I would love to hear your own comments on the trading mistakes and lessons you have learned. Please enter your comments below.

Marcus de Maria
Investment Mastery